Although some IT distributors have already set up operations in the mainland, they are still having difficulty implementing their plan to develop multi-brand sales agencies in the market because of the Chinese mainland's restrictive regulations, the media said.

It is reported that Taiwan's investments are presently confined to local assembly, production, and the sale of products or services for the mainland's IT jobbers.

Taiwan's IT distributors were cited as saying that the IT market has the potential for expansion after the deregulation of the mainland's IT market is carried out.

Meanwhile, according to the IT distributors, Taiwan's personal computer makers are focusing on promoting sales in the Chinese mainland and India because of the high growth rates in those countries' PC user populations.

The mainland PC market's 30 percent annual growth rate has stimulated investment in the mainland by Taiwan businesses, the media said.

Taiwan-based Ability Enterprise and Aurora Corp. have reaped profits from their investments in assembly, sales, and jobber agency services in the mainland.

According to Aurora Corp., the company's profits reached a level of 60 million new Taiwan dollars (US$1.87 million) for 2000. Aurora said that it will increase its outlets in the mainland to 250 and focus on the development of its digital products, such as calculators, electronic translators and digital cameras.

Ability Enterprise's liaison in the mainland, BVI Holding, had profits totaling 279 million new Taiwan dollars (US$8.71 million) for 2000. The company said that 60 percent of its profits are expected to come from its branches on the mainland this year.

Meanwhile, Synnex Tech. International Corp. and Hung Ko, two other Taiwan-based IT companies, have also invested in the Chinese mainland's IT market, the media said.

(Xinhua 02/19/2001)